Sharjah Islamic Bank’s Long-Term IDR Affirmed at BBB+ with Stable Outlook: Fitch

Fitch Ratings (Fitch) has affirmed Sharjah Islamic Bank’s (SIB) Long-Term Issuer Default Rating (IDR) at BBB+ with a Stable Outlook. In addition, Fitch has affirmed SIB’s Viability Rating (VR) at bb+.

Ratings Rationale

SIB’s IDRs reflect a high probability of support available from the United Arab Emirates (UAE) authorities (AA-/Stable), which have a strong capacity to support the banking system due to sovereign wealth funds and recurring revenue from hydrocarbon production, despite decreased oil prices. Fitch anticipates a strong willingness to support the banking sector given UAE authorities’ track record of supporting domestic banks, as the state has close ties and partial ownership of some banks.

In addition, the...